Verdagy secures $73 million Series B funding led by Temasek and Shell Ventures

California, US based Verdagy, a firm involved in expanding electrolyzer technologies for industrial sectors, has successfully concluded a Series B funding round, securing $73 million. Co-led by Temasek and Shell Ventures, the Series B round saw the participation of prominent global investors including Bidra Innovation Ventures, BlueScope, Galp, Samsung Venture Investment, Toppan Ventures, Tupras Ventures, Yara Growth Ventures, and Zeon Ventures.

The additional funding will empower Verdagy to expedite the introduction and market entry of its eDynamic 20-megawatt (MW) electrolyzer module. This module will act as a foundational component for forthcoming systems at the 200MW scale and even larger. After the initial deployment of commercial units with current collaborators, Verdagy plans to extend the utilization of its innovative eDynamic electrolyzer technology to more clients in heavy industries such as oil and gas, ammonia, steel, and e-fuels. This expansion aims to contribute to worldwide industrial decarbonization efforts.

“Verdagy is rising to the challenge to accelerate the green hydrogen economy and decarbonize hard-to-abate sectors such as steel and ammonia production,” said Vikas Gupta, Partner at Shell Ventures. “The management team has a successful track record in scaling climate technologies from megawatts to gigawatts and they are committed to achieving the same at Verdagy.”

Green hydrogen is produced by dividing water using renewable sources such as solar and wind energy. Verdagy’s innovation facilitates the decarbonization of heavy industries through the integration of green hydrogen on a significant scale. Their technology achieves cost reduction due to the economical operation of their eDynamic 20MW electrolyzers, combined with adaptable operational features and the use of single-element architecture SmartCells. These larger cells (3m²) can function at increased current densities, leading to greater hydrogen output per cell. The system also includes real-time performance monitoring and predictive maintenance capabilities.

Industry veterans from the hydrogen, solar, and battery fields are spearheading the development of this advanced green hydrogen production. Leading the team is Verdagy CEO Marty Neese, who possesses extensive executive experience from companies like SunPower and Ballard. COO Peter Cousins contributes insights from his role in scaling Tesla’s gigafactories. Founder and Board Member, Ryan Gilliam, a serial entrepreneur, is the brain behind industrial decarbonization firms Fortera and Chemetry.

Having assembled this skilled team, Verdagy has acquired a substantial wealth of expertise in the realm of large-scale hydrogen production and delivering effective solutions to clients with urgent decarbonization needs.

“By leveraging our patented large electrochemical cells, using membranes and enabling high current density operations and a wide dynamic range, Verdagy has dramatically lowered the CAPEX of an electrolyzer,” said Neese. “We have shown that our core technology works and Verdagy is ready to scale globally.”

“Yara is taking the lead on driving the use of electrolyzers in the ammonia and fertilizer industry. We see a strong need for cost competitive, clean hydrogen to be able to decarbonize and drive the movement towards a more environmentally friendly industry” says Stian Nygaard, Investment Director in Yara Growth Ventures.